The present invention generally relates to credit verification using credit cards, security pass cards and the like. More particularly, the present invention is directed to a method to attain an added level of security against a fraudulent use of such cards.
An automatic teller machine (ATM) typically requires a user to input a personal identification number (PIN) in connection with credit card or bank card usage. Even if a card falls into the hands of a dishonest person, a correct PIN number is still required to initiate a transaction. This requirement is a powerful deterrent for a would-be criminal. On the other hand, point-of-sale cards such as credit cards, security pass cards, debit cards and the like are even more widely used than ATM cards, but are not as secure against fraudulent use.
One problem with prior art cards is that if a cardholder loses his or her card and does not notice it immediately or does not notify the issuer right away, an illegal transaction may take place in the meanwhile. Aside from contractually shifting the responsibility of losses stemming from an illegal transaction to another party, the issuer is dependent on a store keeper or a security provider to verify the authenticity of a card bearer. However, in reality in a credit card transaction, it is rare for a retailer to ask for a separate I.D. aside from the credit card itself. The most the retailer does is to check the purchaser's signature against the one affixed on the back of the credit card. Having only a voluntary check of the signature as a safeguard against an illegal use, a card issuer as well as a business owner is vulnerable to losses stemming from such a transaction.
Where a card involved is a security pass card, the card must also be guarded against unauthorized use. A security pass card may be of a type which authorizes an access to a particular area which is otherwise off-limit. Another type of security pass may be used to keep track of comings and goings of personnel. One of the weaknesses of these cards is that the holder of the card can often pass a security point without any scrutiny unless a guard knows the face of the rightful holder of the card or the card has a photo. As long as the card itself does not alert the guard of impropriety, anyone can use it. Further, even if a guard is posted, there may be a limit to how accurately one can memorize the faces to correspond to the cards. Similarly, a security pass card having a photo is not foolproof because the size of the photo is limited and it is often difficult to tell people's faces.
In some instances, a cardholder is requested to sign out as well as checking out with a card by inserting it in a card reader. As long as the card is a valid card, falsifying someone's signature is very easy. Sometimes, a driver's license number is also requested for the sign-out book. However, it is not checked against a list.
It is of course always possible to add more personnel or hardware to enhance security. For instance, a keypad may be provided at each sales terminal of a department store for a customer to input a PIN number just as it is at an ATM terminal. However, a purchase and installation of keypads are expensive. In the alternative, a credit card issuer can keep issuing more sophisticated credit cards to card holders to stay one step ahead of increasingly sophisticated counterfeiters. But, this involves a significant research and development cost as well as expenses involved in distribution of the new cards.
It is one of the objects of the present invention to provide a method to prevent an illegal use of a credit card, security pass card and the like.
It is another object of the present invention to provide a method to facilitate safeguarding of one's credit card without requiring a significant investment in hardware and training.
It is another object of the present invention to provide a method to enhance security in a security system utilizing a pass card.
It is another object of the present invention to enhance existing computer credit or security systems.